President Donald Trump announced a major shift in China trade talks following his meeting with Chinese President Xi Jinping in South Korea. The U.S. leader revealed plans to cut tariffs on Chinese imports by ten percent, signaling progress on critical trade and security issues. The move aims to reduce long-standing tensions between Washington and Beijing while addressing concerns over fentanyl exports and rare-earth minerals.
The meeting in Busan marked the final leg of Trump’s Asia trip, which included stops in Malaysia and Japan. Both leaders focused on rebuilding economic trust and preventing further disruption to global supply chains. Trump emphasized that progress on fentanyl enforcement and agricultural trade played a decisive role in his decision to ease tariffs.
Trump explained that his administration would reduce tariffs from twenty to ten percent following Xi’s cooperation pledge. However, aides clarified that the reduction applies to specific categories, mainly industrial and consumer goods. He noted that Xi had promised stricter measures to block fentanyl shipments reaching American borders.
During the high-stakes China trade talks, Xi also agreed to suspend new restrictions on rare-earth exports for one year. Trump described the meeting as “an amazing success” and called Xi a “friend” committed to improving bilateral relations.
The discussions also touched on technology cooperation, including potential semiconductor purchases from American companies. While the most advanced chips remain excluded from deals, both sides agreed to maintain communication on supply chain stability. Trump stated that the agreement would be revisited annually, ensuring transparency and mutual benefit.
Trump confirmed that reciprocal visits are planned, with him visiting China in April and Xi coming to Washington later this year. Both leaders expressed optimism about continued dialogue and reduced trade hostilities.
Xi remarked that occasional friction between major powers is natural, yet cooperation remains achievable. He emphasized that China and the United States can thrive together despite their differences.
The renewed China trade talks mark a turning point in U.S.-China relations, combining economic pragmatism with political restraint. Trump’s tariff reduction reflects a strategy to balance pressure and partnership as global competition intensifies. Both governments now face the challenge of turning promises into lasting progress.
